U.S. Economy Posed to Lose Over $12 Billion in Global Travel Spend This Year
The U.S. economy is expected to lose $12.5BN in international traveler spending this year, according to the latest Economic Impact Research from the World Travel & Tourism Council (WTTC). This represents a significant decline from $181BN in 2024 to just under $169BN in 2025. The U.S. is the only country among 184 economies analyzed by WTTC and Oxford Economics projected to experience a drop in international visitor spending, marking a 22.5% decline from its previous peak.
WTTC warns this is not just a blow to the Travel & Tourism sector, but to the U.S. economy at large, affecting jobs, communities, and businesses nationwide. WTTC President & CEO Julia Simpson called it a “wake-up call” for the U.S. government, stating that the country is heading in the wrong direction “not because of a lack of demand, but a failure to act.” While other nations aggressively attract international visitors, Simpson says the U.S. is effectively closing its doors.
In 2024, nearly 90% of all tourism spending came from domestic travel, masking deep vulnerabilities in international market growth. The real economic opportunity lies abroad, and the U.S. is losing ground. According to the U.S. Department of Commerce, March 2025 saw sharp declines from key source markets: UK (-15%), Germany (-28%), South Korea (-15%), and double-digit drops from Spain, Colombia, Ireland, Ecuador, and the Dominican Republic.
The Canadian market, traditionally strong, is also retreating, with early summer bookings down over 20%. WTTC emphasizes that this is not just a seasonal dip but a clear indicator of declining international competitiveness. While other countries are recovering and expanding, the U.S. is slipping backward, relying too heavily on domestic travelers without a robust international recovery strategy.
The consequences of inaction are profound. In 2024, Travel & Tourism contributed $2.6TN to the U.S. economy, supported over 20 million jobs, and generated $585BN in tax revenue, about 7% of total government income. With stronger international visitor flows, these figures could climb even higher. Meanwhile, outbound travel is booming, showing that Americans are eager to explore the world while inbound recovery stalls, eroding the U.S.'s global appeal and competitiveness.
WTTC warns that this imbalance jeopardizes the U.S.’s role as a leading destination for trade, culture, and business. In 2019, international visitors generated $217.4BN and sustained nearly 18 million jobs. That legacy is now at risk. WTTC urges urgent government action to improve travel access, boost international marketing, and rebuild traveler confidence to restore the U.S.'s place as a top global destination.
